Procedure for Importing Gold into India
Indians love gold and it is one of the most important imports to India. India is the world’s major gold market, but interestingly, India does not produce large quantities of gold to meet its huge domestic demand. India ranks second in the world in gold imports after China.
The country imports gold in the form of gold bars regulated by the Reserve Bank of India (RBI), the central bank. During the pandemic, India imported $ 34.6 billion worth of precious metals last fiscal year from $ 28.2 billion in the previous fiscal year. Again this year, prices are lower than before, but India has significantly increased its gold imports. In 201415, India imported 915.54 tonnes of gold, an increase of about 38% from the previous year. Most of the gold imported into India is made up of gold bars.
The RBI regulates the import of gold and gold bars into India. Anyone from India with a valid passport issued under the Passport Act of 1967 can import gold. According to RBI Circular, only agencies notified by the Directorate General of Foreign Trade (DGFT) are allowed to import gold into India. Imports are only permitted after a permit has been issued by DGFT.
The weight of gold (inclusive of ornaments) needs not to increase by 10 kgs per passenger.
Import of gold withinside the shape of coins and medallions is definitely prohibited.
Entities are authorized to import gold totally for export and for no different purpose.
All gold imports ought to be routed by custom bonded warehouses.
For every consignment of gold bars imported, the importer ought to publish the record of their usage and evidence of proof to the valuable excise office.
Ornaments studded with stones and pearls are restricted.
Indian passengers who’ve lived abroad for over a 12 months are authorized to carry gold as jewelry up to an aggregate value of-
For male passengers- Rs. 50,000
For female passengers- Rs. 1,00,000
RBI Circular RBI / 2013-14
Imports of gold and gold Dore bars into India are regulated by Circular 25 of RBI / 201314/187, AP (DIR Series) dated August 14, 2013. This Circular replaces Customs Circular No. 28/2009 Cus10 / 14/2009 on Gold Imports. Imports of silver and platinum into India are also regulated by the Customs Notice dated October 14, 2009.
Entities Allowed to Import Gold Bars into India
According to RBI Circular, gold imports are only permitted to companies notified by the Directorate General of Foreign Trade (DGFT). Currently, DGFT allows the following companies to import gold bars into India.
- Metals and Minerals Trading Corporation Limited (MMTC);
- Handicraft and Handloom Export Corporation (HHEC);
- State Trading Corporation (STC);
- Project and Equipment Corporation of India Limited. (PEC);
- STCL Limited;
- MSTC Limited;
- Diamond India Limited (DIL);
- Gems & Jewellery Export Promotion Council (G&J EPC);
- Star Trading House (only for Gems & Jewellery sector) or a Premier Trading House;
- Any other agency authorized by the Reserve Bank of India (RBI).
Conditions for Importing Gold Bars into India
The following conditions are imposed for all entities to import gold bars into India:
Imports of gold in the form of coins or medallions are prohibited.
SEZ and EOU, Premier, and Start Trading House companies/entities are only allowed to import gold for export purposes.
These entities are not allowed to withdraw gold imported for any purpose other than export.
Gold was traded against a permit such as Advance Authorization/Duty-Free Import Authorization (DFIA) imports must only be used for export purposes and cannot be diverted for domestic use.
All gold imports must go through a bonded warehouse.
Import of Dore bars is only permitted for licenses issued by the Directorate General of Foreign Trade.
SEZ and EOU, Premier, and Star Trading House companies or entities are permitted to raise gold from Licensee’s refineries for export purposes only, and such companies may use such gold for purposes other than export. The clearing is not allowed.
For each consignment of Dore bars, the licensee shall be responsible for the use of Dore Bars, gold produced after refining, gold issued to exporters, and export certification of goods produced and exported by those exporters. Must be submitted. Central excise officer.
Which Country Is The Biggest Gold Exporter to India?
Switzerland, Saudi Arabia, and China are major exporters of gold to India. During the early years, the Middle East countries were always India’s main source of gold. However, Switzerland in the last financial year has consolidated its position as one of India’s major import partners as it increased its gold imports and displaced Saudi Arabia to become the 4th largest import partner of India. Gold imports from Switzerland account for almost half of India’s total gold imports. On the other hand, Dubai, the city of gold, is also an important place where India imports gold.
Hi, I am Noorshaba Mirza and I am a self taught blogger, I am a Law student and I love writing and learning as “Learning never exhausts the mind.” and I have written many research paper. As writing express and connect to various things so never stop exploring and spreading knowledge.